NOTE 6 – LONG-TERM LIABILITIES

Long-term debt at May 29, 2015 and May 30, 2014 consists of the following:

In March 2009, the Company established a construction line of credit with interest-only payments due through the end of the construction period at a fixed rate of 4.25%. In September 2009, the loan converted to a 10-year, 4.25% fixed rate equipment note, payable in equal monthly installments based on the final amount drawn during the construction period which was $4,000,000. In March 2011, the loan was modified by taking the remaining balance of $3,532,700 and adding another $2,900,000 to finance the implementation of a new Enterprise Resource Planning system. At that time, the interest rate on the loan was adjusted to 3.52% and the terms were re-established at 15 years for the new amount of the loan.

	2015			2014
Total equipment note payable	$	4,944,233		$	5,314,212
Less: current portion		(382,939	)		(369,979	)
Total non current portion	$	4,561,294		$	4,944,233

In January 2015, the Company established a note in the amount of $2,204,375 in order to fund the purchase of 440,875 shares of treasury stock. The note is dated January 30th, 2015 and is to be repaid over 5 years at 3.3%.

	2015			2014
Total stock buyback	$	2,068,484		$	-
Less: current portion		(416,265	)		-
Total non current portion	$	1,652,219		$	-

		2015			2014
Total equipment and stock buyback note payable	$	7,012,717		$	5,314,212
Less: current portion		(799,204	)		(369,979	)
Total non current portion	$	6,213,513		$	4,944,233

Other long-term obligations at May 29, 2015 and May 30, 2014 consist of the following:

	2015			2014
Salary continuation plan	$	1,028,030		$	1,133,154
Less: current portion		(106,148	)		(212,970	)
Total non current portion	$	921,882		$	920,184

The Company is accruing the present values of the estimated future retirement payments over the period from the date of the agreements to the retirement dates, for certain key executives. The Company recognized compensation expense of $134,876 and $143,695 for fiscal 2015 and 2014, respectively (See Note 7).